Normal Distribution

(redirected from Normal distribution curve)
Also found in: Dictionary, Thesaurus, Medical, Acronyms, Encyclopedia.

Normal Distribution

The well known bell shaped curve. According to the Central Limit Theorem, the probability density function of a large number of independent, identically distributed random numbers will approach the normal distribution. In the fractal family of distributions, the normal distribution only exists when alpha equals 2, or the Hurst exponent equals 0.50. Thus, the normal distribution is a special case which in time series analysis is quite rare. See: Alpha, Central Limit Theorem, Fractal Distribution.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Bell Curve

A curve on a chart in which most data points cluster around the median and become less frequent the farther they fall to either side of the median. When plotted on a chart, a bell curve looks roughly like a bell.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
With the norm referenced system there is no pass mark, because each student is allocated a grade determined by where their attained mark falls on the Normal Distribution Curve. We were taught that A-levels exams were marked using norm referencing.
c) Unlike the size distribution of columns with two plates at their bases (CP1a), which is well described by two normal distribution curves in Table 3, the size distribution of columns or bullets with one plate was characterized with one simple normal distribution curve.
Under the normal distribution curve 99.75% of the samples remain within a range of 3 times the standard deviation, which in our example is between 162 and 198 g/[m.sup.2].
Keep on sampling and as you approach an infinite number of data points and you will find that they fit a normal distribution curve. With a spreadsheet, it takes a minute or so to make a histogram from a column of num bers.
Said he, "The fact that reading ability follows a normal distribution curve is quite well known." And he went on to point out that "even the President of the United States can't get rid of the normal distribution curve by making speeches or appropriating money.
In a Normal distribution curve, a data point that seems to be way off-outside the Normal distribution - is treated like an oddball, when, in fact, it fits in our distribution and is regarded as a reasonable occurrence.